The Research On Corporate Internal Governance Of Mainland Chinese Enterprise In Hong Kong

Mainland Chinese enterprises in Hong Kong (HKMCE) refer to the group of enterprises operating as well as being registered in Hong Kong while capital resources coming from the mainland. HKMCE have been developing rapidly and gained significant achievements since the foundation of the People's Republic of China. However, Because HKMCE's operating and management activities take place both in Hong Kong and in the mainland China respectively and are governed and influenced by the two different institutional environments, many problems in relation to corporate governance and governmental supervision have emerged while they are developing very fast. Therefore, to study the corporate governance within HKMCE will be helpful to the improvement of their corporate governance and the experiences summarized from HKMCE can be used to assist the state-owned enterprises in the mainland China which are expecting to enter the international market.By employing agency theory and incomplete contract theory, the author has conducted an in-depth, comprehensive and systematic analysis on the three mechanisms of HKMCE's corporate governance. Some characteristics such as the ownership structure dominated by state-owned shares, multiple-restrictive board of directors and governmentalized executives have been found from this research. Besides, the author has made a comparative analysis on differences in corporate governance models used among HKMCE, Chinese business enterprises in Hong Kong (HKCBE), state-owned enterprises located in the mainland China and the international practices. Based on the comparative analysis, the author has drawn a conclusion that the different corporate governance models tend to have the similar function. The game theory has been used to analyze three parties of big share-holders, board of directors and management so as to clarify their relations more clearly.Under the framework of the above-mentioned theories, 72 HKMCEs listed in Hong Kong, 50 HKCBEs and 200 companies listed in Shenzhen and Shanghai stock markets have been used as samples to conduct analysis on HKMCE's corporate governance structure and their performance from three dimensions of ownership structure, governance by board of directors and incentive from management. From this research, the author has not only discovered the general characteristics of state-owned enterprises such as highly concentrated ownership, less efficient check and balance, the convergence of senior management's interests as well as the effect of...